Short-Term Rental Regulations Clause
(Permitting Process) (Municipal)

Summary

This short-term rental clause template addresses municipal permitting and processing requirements. It may be modified for use in municipal draft legislation allowing residents to obtain use and operating permits to offer their residential property as short-term rentals or short-term vacation rentals (STRs). This template includes practical guidance, drafting notes, and alternate and optional clauses. Municipalities require STRs to be properly registered by the owner. This process generally requires the owner to complete an application requesting that the property be permitted for use and operation as an STR. See, e.g., Greece, New York's STR permit requirements and Beaufort County, South Carolina's STR requirements. Some municipalities require two separate permits: one for ownership and use, and another for operation of the property as an STR. In order to be properly permitted the owner/operator is generally required to obtain and provide proof of insurance, and the property may be required to undergo a series of inspections to ensure that the premises is safe and in compliance with all codes and regulations. For more information on STRs, see Short-Term Rental and Occupancy Regulations. For additional STR clause templates, see Short-Term Rental Regulations Clause (Operator Residency Requirements) (Municipal), Short-Term Rental Regulations (Recordkeeping) (Municipal), Short-Term Rental Regulations (Taxes and Fees) (Municipal), and Short-Term Rental Regulations (Violations and Penalties) (Municipal).